Oil extended its rise yesterday noting that trading stabilized below the subsidiary channel's support levels that were previously breached and shifted to resistance, at 75.20. Overbought signs are appearing on the momentum indicators which adds to the strength of those resistance levels, therefore, we expect a bearish intraday direction, targeting 72.45 that requires a clear breached for the subsidiary support near 74.15, but in order to extend the bearish trend, a daily closing below 75.20 is required also.
The trading range for today is among the major support at 72.45 and the major resistance at 76.20
The general trend is to the downside as far as 84.00 remains intact with targets at 61.60.
|Recommendation||Based on the charts and explanations above our opinion is selling oil with the breach of 74.15 targeting 72.45 and stop loss above 75.35 might be appropriate|